FICO price target lowered to $1,950 from $2,575 at Needham

Needham analyst Kyle Peterson lowered the firm’s price target on FICO (FICO) to $1,950 from $2,575 but keeps a Buy rating on the shares. The stock has pulled back after the FHFA announcement that VantageScore 4.0 can now be accepted by Fannie Mae and Freddie Mac amid investor concern about the days of the “FICO monopoly” being over, but while there are still questions to be answered, FICO has numerous levers around auto scores pricing, buying back more stock, and streamlining G&A in parts of the software business, the analyst tells investors in a research note. Needham is still feel confident that FICO’s 20%+ EPS growth remains the base case moving forward.